-66 Two hazardous environment facilities are being O evaluated, with the projected life of each facility being 10 years. The company uses a MARR of 15%. Using rate of return analysis, which alternative should be selected? Alt. A Alt. B $615,000 $300,000 25,000 92,000 First cost O&M cost 10,000 Annual benefits 158,000 65,000 Salvage value -5,000

-66 Two hazardous environment facilities are being O evaluated, with the projected life of each facility being 10 years. The company uses a MARR of 15%. Using rate of return analysis, which alternative should be selected? Alt. A Alt. B $615,000 $300,000 25,000 92,000 First cost O&M cost 10,000 Annual benefits 158,000 65,000 Salvage value -5,000

Structural Analysis

6th Edition

ISBN:9781337630931

Author:KASSIMALI, Aslam.

Publisher:KASSIMALI, Aslam.

Chapter2: Loads On Structures

Section: Chapter Questions

Problem 1P

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Concept explainers

Tax Significance of Depreciation

While calculating taxes, depreciation is the method used to allocate the cost of a tangible or immovable asset over the useful life of an asset. In other words, allocate part of that cost to the times when tangible assets help generate revenue or sales. By recording the depreciation of an asset, depreciation reduces the amount of taxes a company or business pays in tax deductions.

Question

(b) Annual cash fl
(c) Rate of return analysis
-66 Two hazardous environment facilities are being
evaluated, with the projected life of each facility
being 10 years. The company uses a MARR of
15%. Using rate of return analysis, which alternative
should be selected?
Alt. A
Alt. B
$615,000 $300,000
10,000
158,000
First cost
O&M cost
25,000
92,000
Annual benefits
Salvage value
65,000
-5,000

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